The only way is down when it comes to Brent Cross lease terms. Brent Cross flats that have a residual term lower than 80 years will drop in market price even faster, and the cost of extending your lease will rise.
Leasehold premises in Brent Cross with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you better control over the value of your Brent Cross leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Jasper was the the leasehold proprietor of a 2 bedroom apartment in Brent Cross being marketed with a lease of just over 59 years left. Jasper on an informal basis contacted his landlord being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £125 annually. No ground rent would be due on a lease extension were Jasper to invoke his statutory right. Jasper obtained expert legal guidance and secured an acceptable deal without resorting to tribunal and sell the flat.
Last Summer we were contacted by Dr D Murphy , who completed a one bedroom apartment in Brent Cross in October 1998. The question was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparative residencies in Brent Cross with a long lease were in the region of £166,800. The mid-range ground rent payable was £50 billed yearly. The lease came to a finish on 25 November 2076. Taking into account 50 years left we calculated the premium to the landlord for the lease extension to be within £32,300 and £37,400 plus expenses.
An example of a Lease Extension decision for a Brent Cross premises is First Floor Flat 61 Wilberforce Road in March 2014. The premium payable was £10,130 and the case was remitted back to the Willesden County Court to effect the Vesting Order (Claim No 3W103100). This case was in relation to 1 flat. The unexpired term was 71 years.